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Spirit Airlines Observes Decrement in Annual Revenue, Betting on Recession-Resilient Low-Cost Model

July 23, 2020 / Korey Matthews
SHARESHARESHARE

Earnings season for airlines in the age of coronavirus means one thing: There are very few numbers that executives are excited to talk about. Spirit Airlines on Thursday was no exception. The ultra-low-cost airline reported that its total operating revenue for the second quarter was $138.5 million, a decrease of 86 percent year over year. But the airline is betting its low-cost structure could help it when the airline industry begins to recover.
“We expect the rest of the summer to remain challenging for us and the industry,” CEO Ted Christie said in an earnings call. “However, when demand for leisure travel rebounds and stabilizes, as evidenced by our June results, our leading low-cost structure positions us well to be among the first to return to profitability.”